LETTER TO THE EDITOR: ‘Millionaires next door’ to take hit with tax relief

I see Beverly Monahan is off to good start this year by delivery to the Delaware State News Opinion page another political diatribe “Let time tell the tax relief tale,” printed Jan. 1.

I am not fan of President Trump nor of Hillary Clinton for that matter and that’s why I voted for the other guy. But I try to analyze situations from all sides before developing an opinion or a course of action and sometimes I have been known to change my mind. Unlike some people I make mistakes and I don’t pretend to know everything.

That said, I have to agree with the Democrats that in seven to 10 years this tax relief legislation is going to boot me from behind because in my experience, tax relief legislation; “read my lips;” usually does. Interestingly I heard one Republican congressman on television admitting that the plan was problematic but that it could be tweaked at a later time. I presume that time will be 2020 or 2024 the years of the next presidential elections.

Understand that although I don’t especially care for President Trump as a human being I don’t think he’s as stupid as some people believe. Despite that, I don’t think he’s the author of this tax relief legislation because it is just too brilliant and I rarely mistake presidents for being geniuses.

Indeed whereas I believe the legislation is flawed (and that it was surely written to Ensure President Trump and his own would be first at the trough) unbeknownst to many people, the legislation addresses a serious problem both proactively and expeditiously. That problem being the growing personal property real estate boon as a primary driver of our economy, which has to be reeled in before it creates an exceedingly harsh inflationary environment.

I know a few millionaires who aren’t going to be happy about that; but these people aren’t tycoons. They are “the millionaires next door.” I put that phrase in quotes because it mirrors the title of a book I think everyone should read. These unfortunate souls will be unfairly carrying the burden of this tax relief legislation because more than likely they own both primary and secondary residences in their own names rather than under corporate identities.

These houses are usually fairly large but more importantly they are often tricked out with luxuries and/or have scenic views along with hefty property taxes.

Understand many such minor millionaires are small business owners who employ a large segment of the population. If you start beating them up, they are going to lay workers off. Face it, the monoliths of free enterprise have already said they aren’t going to increase hiring or investment in the U.S. due to this legislation so indeed the legislation is going to have some unforeseen negative effects.

I don’t really pity the minor millionaires as they are survivors, they’ve proven that. I have more sympathy for the twentysomethings with $300,000-plus mortgages on one-bedroom walk ups with on-street parking if you can find it. That nightmare is very real and the values on such properties, although injured during the crash, have recovered and are skyrocketing.

It’s not unrealistic to presume such a flat might fetch more than a million in 10 years depending on the location. The working poor can’t survive in such an economic environment and so yes indeed some mastermind somewhere devised this tax relief plan.

As for personal repercussions living modesty in Delaware, I doubt the value of my house will drop much and the tax relief I realize might finance one trip to my butcher.

Carol Hotte

Facebook Comment